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what is a short sale?

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November 28 2012 - Tampa
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A short sale occurs when a property sells for a price that is insufficient to pay back the loan(s) secured against it (or any other liens against the property, such as deliquent property taxtes, Homeowners/Condominium Association Fees, ect.) as well as standard sales closing costs. In such a case, in-order to complete the sale, you, your lender(s) must agree to forgive all or a portion of the amounts you are "short" or make other arrangements for repayment (such as execution of a promissory note). Your lender(s) will generally not allow you to receive any proceeds or otherwise obtain any monetary benefit as part of a short sale.

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April 23 2013
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here there's a good explanation http://sitehousepage.info
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March 28 2013
As you may have read in previous posts, a 'short sale' is a situation where a homeowner's mortgage exceeds the value of his home. Having worked on a good number of these situations, I have some advice for a potential buyer.

1) Have your agent ask if the price listed is a BANK APPROVED short sale price. By this I mean has the mortgage holder or bank agreed to let the home go for what it is listed for. I have seen instances where the homeowner lists the home, and prays that the bank will accept the shortage. In years past, during the mortgage fiasco, I saw the banks changing their minds several times during the transaction.

2) Have your financing in place as much as possible. Once your offer is accepted, the bank will want you to move QUICKLY!

3) If your hear is set on a certain home that is in a short sale predicament, be patient. 

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March 28 2013
A short sale is simple: when the seller is short to complete the sale.... he will need to get bank approval to complete the sale 'short'....

Short implies they are short to pay their balance of mortgage, which most certainly, is higher than the value of the home.

It can take a while to complete on a short sale due to circumstances...
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March 27 2013
A short sale happens when the home owner can no longer make the payments and has to sell the home for less than they owe.  When they find a buyer the contract has to go to their lender for approval since it is being sold for less than they owe.  That process usually takes 3-4 months.  I can explain the process in further detail if you wish, just contact me and I will be happy to answer all your questions.
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November 29 2012
In short: A sale for less than what is owed on the property.  The contract must be signed by the seller first, then it is submitted to the lienholder for final approval on price & terms.  Average short-sale takes 3-6 months from contract to closing.

Any other questions specifically about them, please let me know!

Hope this helps.  Shayla Twit, Sarasota FL Realtor
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November 29 2012

short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.  Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties. However, in California legislation was passed to preclude deficiencies after a short sale is approved. The same is true of lenders on first loans and lenders on second loans - once the short sale is approved, no deficiencies are permitted after the short sale.

A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. Both often result in a negative credit report against the property owner.

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November 28 2012
 
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